This is HUGE for Telco in general...With the restatement this company will
have actually LOST money for over the past year...
Just think about all the IOU's that this company has to all it's
vendor's, we're talking 30 Billion dollars in debt. It look's like
bankruptcy is coming soon for this company. What's Cisco's exposure to this?
I believe it's fair to say it's large, be it directly or indirectly. This
will be the largest bankruptcy in US history, hence world. WorldCom has
assets in excess of 105 Billion dollars. Compare this to Enron with 60
Billion dollars. They will be cutting an already planned 16,000 employee's
this week. Who's next: Qwest? Just follow [EMAIL PROTECTED]
I read a couple of week's ago from one of the wire services that 24 of
the 29 major Telco's will go under. The so called safe one's where
Bellsouth, Cisco, SBC and some others. I've also picked up off of both
Reuters.com and Bloomberg.com that the Telco market is not expected to turn
around until maybe late 2003 and will be the last thing to pick up in a
revived economy. Look at all the companies failing in the US and Europe, the
drastic slide in the value of the US Dollar against the Euro and the Yen and
the fact that 2 million layoff's in the US last year, with 500,000 of those
from tech related jobs alone, it should become apparent to even the simplest
minds that things will become worse with these scandals coming out. Should
the US housing bubble burst kiss this economy good bye for the next five
years.
"- There is already too much surplus equipment out there that it will take
years to absorb. And as far as jobs and hiring out in the world, well who's
going to quit there job because they didn't get a raise lately?-"
JMHO.... :-0
-Eric
----- Original Message -----
From: "Chuck"
To:
Sent: Wednesday, June 26, 2002 12:31 PM
Subject: Off Topic - Cisco vis a vis World Com [7:47505]
> So far today I have seen no word from Cisco on its exposure to World Com.
>
> the other so called players in the networking industry - Redback, Nortel,
> and Lucent, have all said they have very little on the line with WorldCom.
> Of course, these are companies with one foot in the grave already.
>
> WorldCom is one of Cisco's MAJOR customers. Cisco stock is back close to
> it's low of the last year. Maybe Cisco believes nothing needs be said?
Maybe
> Cisco figures they can still sell their stuff through other channels?
>
> As an employee of another of Cisco's major customers, maybe this bodes
well
> for me? with WorldCom out of the way, and no longer selling at cost to
steal
> my customers, maybe my own business will pick up?
>
> Sheesh, this is scary.
>
> Anybody out there know how what used to be UUNet is doing? Viable? Any
> repercussions through the ISP world?
Message Posted at:
http://www.groupstudy.com/form/read.php?f=7&i=47514&t=47505
--------------------------------------------------
FAQ, list archives, and subscription info: http://www.groupstudy.com/list/cisco.html
Report misconduct and Nondisclosure violations to [EMAIL PROTECTED]
